Atmos Energy Corporation 2009 Summary Annual Report
Atmos Energy Corporation
P.O. Box 650205
Dallas, Texas 75265-0205
atmosenergy.com
Natural gas is the superhighway to America’s energy future.
It’s the integral fuel source that underpins the best
energy options for America today.
Atmos Energy is helping pave the way.
While
other fuels have been grabbing
headlines for the last several years,
natural gas has been quietly
building the superhighway that
brings clean, safe and economical
energy to millions of homes and
businesses across the country.
Bob Best and Kim Cocklin of Atmos Energy
recently discussed the new realities of American energy.
Robert W. Best, chairman and chief executive officer, (right)
and Kim R. Cocklin, president and chief operating officer
Let’s start by discussing our nation’s energy policy. What role does
natural gas play in that policy?
Best: Our national energy policy has been confusing and inconsistent. It’s
been more about energy politics than energy policy. We’ve not had a cohesive,
well-planned and well-received policy, and because of that we’re suffering as
a nation.
There are far more questions than answers. Can we be more energy
independent than we’ve been in the past? What role do renewables, such as
wind and solar, play in the energy mix? What role does coal play? Coal is not a
clean fuel, but our country has plenty of it. And, what about nuclear power?
It accounts for about 9 percent of our total energy use, and it is a clean fuel,
but people do not want a nuclear power plant near their home.
It just seems obvious that natural gas must play a larger role in our coun-
try’s energy mix. Yet, it’s going to take all fuels. That’s why we need a rational
energy policy to promote research and development of newer fuels, to develop
truly clean coal, to design and build nuclear power plants that communities will
feel comfortable with, and to encourage the role of natural gas in the future.
ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT | 3
Cocklin: Some say natural gas is the bridge to our nation’s
energy future. But natural gas is more than that. It’s really our
energy superhighway. It should play a much larger role in
the country’s energy mix because it is clean, safe and environ-
mentally superior to any other fossil fuel. What’s more, the
United States has more than a 100-year supply.
Past presidential administrations have largely left natural gas out of the energy equation.
Today Congress is seriously considering a bigger role for natural gas. Obviously, Congress
has other issues on the table at the moment, but enacting energy policy is one of the top four
goals of the current administration. We at Atmos Energy look forward to being part of this
needed national dialogue.
You characterize natural gas as an energy superhighway. Do we really have enough gas?
Cocklin: We do. There has been a long debate over this issue. But, more than any other time
in my 28-year career, everyone in the industry believes we have abundant domestic natural gas
resources. The experts who study gas resources estimate 100 years of potential supplies. And,
that’s probably conservative, because they don’t really know how much gas will ultimately be
recovered from new shale discoveries or from deepwater sites on the Outer Continental Shelf.
As we’ve seen with the Barnett Shale in North Texas, these newer finds are prolific.
Producers are finding more gas every day. New technologies are allowing them to unlock new
formations and new regions. With the new techniques and technology for accessing shale
gas, offshore gas and methane hydrates, producers are able to bring much more gas to market.
That’s why we are very excited and optimistic about our product’s future.
Who Uses Natural Gas?
Residential sector
4.9 Tcf
Electric power sector
6.7 Tcf
Commercial sector
3.1 Tcf
Other
0.6 Tcf
Industrial sector
7.9 Tcf
The use of natural gas to generate elec-
tricity is expected to grow significantly
in the future. Power plants gain many
advantages from burning natural
gas. Not only is natural gas delivered
safely and reliably by underground
pipelines, the fuel is so clean that the
plant’s emissions are a fraction of those
from large coal-fired power plants.
Proposals now before Congress would
enact regulations to issue emission
allowances that could be traded by
industrial and utility companies.
Under this “cap-and-trade” program,
The United States consumed about 23.2 trillion cubic feet (Tcf) of natural gas
natural gas would be highly valued for
in 2008, providing 24 percent of the country’s total energy supply.
its naturally clean characteristics.
Source: U.S. Energy Information Administration
4 | ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT
Best: That’s right, Kim. In
the late 1970s, Americans
were told the country was running out of natural gas. Congress even
passed a law that precluded using natural gas as a boiler fuel for
big applications like making electricity and industrial steam. The
politicians basically were claiming that Americans couldn’t count on
natural gas for the long term. Well, they were wrong. People began
to conserve; new natural gas fields were discovered; and natural gas
companies, pipelines and utilities kept gas flowing to homes and
businesses. During the Reagan administration, that act was repealed.
And, since then, we have returned to using natural gas for many
purposes.
What are some of the benefits of natural gas?
Best: Natural gas is naturally friendly to the environment. It comes
right out of the ground, ready to use; so, there’s no dirty processing
or transportation byproducts. Its chemical composition makes it the
most environmentally sensitive fossil fuel. When it’s burned, natural
gas emits half the carbon dioxide and less than one two-thousandth
the sulfur dioxide of coal.
If your home has gas logs in the fireplace or a gas cooktop in
the kitchen, you intuitively know gas is clean. Now, imagine if you
had a coal fireplace or a coal-burning stove. Thankfully, we live in
the 21st century and we don’t burn coal in our homes anymore.
Many people, however, don’t know that electricity isn’t a fuel
and that, when you flip a light switch on, more than half of the
electricity we use is generated by burning coal. Add to that the
carbon emissions required to mine coal and transport it, and you
can imagine coal has a pretty large carbon footprint.
ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT | 5
Natural Gas Pipelines and Gas Shale Basins
Natural Gas Pipelines and Gas Shale Basins
Gas shale basins
Natural gas pipelines
The natural gas pipeline network in the United States spans the country
The natural gas pipeline network in the United States spans the country
and is well situated to deliver new sources of natural gas from shale basins.
and is well situated to deliver new sources of natural gas from shale basins.
Source: U.S. Energy Information Administration
Source: U.S. Energy Information Administration
Natural gas is an all-American
fuel. A 2009 report from the
respected Potential Gas Committee
found that the United States now
has more than a 100-year supply.
Exploration in the Haynesville
Shale region of Louisiana could tap
a gas supply larger than the prolific
Barnett Shale gas field in North
Texas. Using our country’s natural
gas would improve our nation’s
energy security and keep dollars in
this country.
Cocklin: Natural gas heat is warmer than electric
heat. It’s as much as 25 degrees warmer for home-
heating applications. So, instead of getting an initial
blast of cold air from an electric heat pump, a gas
heater gives you gentle, even waves of warm air circu-
lating throughout your house.
Gas clothes dryers take advantage of this warmer
and more-even heat to dry clothes faster. The economies of using natural gas and its warmer heating properties mean that drying a
load of clothes in a gas dryer costs about half what an electric dryer costs. Newer energy-saving devices, such as tankless water
heaters, use natural gas to immediately heat only the water that’s needed, so the water feels great and you never run out of hot water.
Lower utility bills are a tremendous benefit, too. Where natural gas really achieves benefits for consumers is in conserving
on energy budgets. Natural gas appliances might cost a little more at the point of purchase, but they pay off in the long run
by saving consumers thousands of dollars on their energy bills during the appliances’ lifetimes.
Best: Natural gas is also reliable and safe. Gas lines are buried deep beneath the ground, and they remain mostly unaffected by
weather. Electricity, in contrast, can be unreliable because electric distribution and transmission lines are above ground and
exposed to the elements.
The natural gas business has always been an underground business, and our infrastructure is in extremely good shape.
Federal and state laws require us to maintain our pipelines at very high standards for safety reasons. Atmos Energy dedicates a
significant amount of capital annually to maintaining our infrastructure. We monitor our pipelines 24 hours a day, 7 days
a week, 365 days a year and we have highly trained crews who can quickly solve any problem. We have an excellent safety record.
6 | ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT
Natural gas is the naturally clean
choice to fuel public transportation
and large fleets. Each natural-gas-
powered bus or large vehicle put
into service takes off the road the
carbon-emission equivalent of 325
gasoline vehicles. As part of its com-
mitment to improve air quality, the
Dallas Area Rapid Transit Authority
intends to buy nearly 600 new buses
fueled with natural gas.
We’ve heard some dramatic predictions about shifting from oil to other forms of energy,
such as natural gas. How would this happen? And, is it realistic to expect this to happen?
Cocklin: It is realistic, but it’s important to understand the role different forms of energy can
play. Some groups have done a marvelous job of advertising for windmills and wind energy,
solar energy and other renewables. Yet, wind and solar today supply only about 2 percent of
the energy we use. Natural gas, on the other hand, supplies about 25 percent of our energy.
As a nation, we’ve overlooked the larger capabilities of natural gas until only recently. Gas
is abundant, reliable, efficient and clean; it’s an energy we can use today. While it makes sense to add sustainable energy, like
renewables, our policymakers must recognize that this is not going to be cheap to do. It won’t be easy, and it won’t be fast.
8 | ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT
Take production costs. Biomass, geothermal, biomass
waste and solar all cost from three to five times more than
natural gas to generate a kilowatt-hour of electricity. A
viable infrastructure to produce renewable energy must be
installed, requiring capital, land, equipment, human exper-
tise and public acceptance. To believe that renewables could
provide the bulk of our energy by even 2040 is unrealistic.
Developers and investors simply can’t ramp up that fast to
meet the expected growth in our energy demand, let alone
control costs to compete in the future world economy.
On the other hand, natural gas is ready today. Gas pro-
duction, transmission and distribution virtually cover the
nation. The infrastructure exists, and new investments are
easily made. We need only to tap the existing system. And,
in doing so, we can dramatically lower greenhouse gases at
a reasonable cost while improving the nation’s balance of
trade and energy security.
Best: One of the first and easiest shifts for the country to
make is to use more compressed natural gas or liquefied
natural gas to run vehicles. Natural gas vehicles can play a
very important role in the nation’s quest for cleaner, stable
energy. Not only are they extremely efficient, but also they
produce nearly a third fewer greenhouse gases than their
petroleum counterparts. And, as Kim noted, we don’t have
to go overseas to get natural gas. More than 98 percent of
the natural gas Americans consume comes from right here
in North America.
Now, everyone can’t run out and convert a personal
car or truck to natural gas tomorrow. But, for companies
and cities with fleets of cars, trucks, buses and utility
vehicles, it’s easy to set up central refueling stations and
begin to make the change. Right here in Dallas, DART
(Dallas Area Rapid Transit Authority) recently changed a
decision to buy new diesel buses in favor of 600 natural gas
buses. Every bus, large truck and large utility vehicle pow-
ered by natural gas saves the equivalent in greenhouse gases
of removing about 325 gasoline vehicles from the streets.
Better air quality and less dependence upon foreign oil are
tremendous benefits for our country and its citizens.
Natural Gas Is the Cleanest Fossil Fuel
Pounds of carbon-dioxide (CO2) emissions
per million British thermal units (Btu)
250
200
150
100
50
0
C
o
a
l
W
o
o
d
R
e
s
i
G
d
P
r
a
s
o
l
i
o
n
p
e
u
a
l
o
i
l
N
a
t
a
n
e
u
r
a
l
g
a
s
Using natural gas with its low carbon-dioxide emissions can dramatically
reduce greenhouse gases that lead to global warming.
Source: U.S. Energy Information Administration
ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT | 9
Full-Fuel-Cycle Energy Consumption in a Typical New Home
Millions of British thermal units (Btu) per year
167 MMBtu
121 MMBtu
200
100
0
Natural gas home
6.4 tons CO
2
Electric home
10.1 tons CO
2
Methane, the primary ingredient
of natural gas, is being recovered
today as a sustainable resource from
many landfills. At the Carter Valley
Landfill in Church Hill, Tennessee,
Manufactured Methane Corpora-
When measured on a full-fuel-cycle basis, a typical new natural gas home requires about
tion delivers pipeline-quality meth-
one-quarter less total energy than is required for a comparable all-electric home.
ane gas to Atmos Energy Marketing.
Source: Gas Technology Institute and American Gas Association
AEM is finding a growing market
for this product among public utility
systems and municipalities con-
cerned about the environment.
Does the natural gas industry have the pipelines and facilities
in place to make this shift?
Best: Yes, the natural gas infrastructure is ready. Before World War
II, natural gas tended to be a local or regional proposition, based
around where the gas was produced. After the war, long-line pipelines
were built to reach from the producing areas to all the cities across
the country, and that’s what supported the robust growth of the natural gas industry. The industry
has producers that find and bring the gas from the ground, interstate and intrastate pipelines
that transport it long distances, and local distribution utilities that manage the product within
communities to serve consumers, usually at regulated rates.
Today, Americans have access to natural gas all over the country. From the pipeline to the “city
gate,” natural gas is available for distribution companies like Atmos Energy to bring it directly to
consumers and businesses. Unlike the electric utility industry, the natural gas business is not tightly
integrated. Each segment of the industry is made up of separate, competitive businesses.
10 | ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT
Cocklin: The interstate pipeline network is this country’s
greatest energy treasure. The market has been deregulated,
so that no one controls the large pipelines. Today the in-
dustry is extremely efficient and market-responsive. There
is really no impediment to growth, and with the prolific
amount of supply that could be available, it bodes very
well for the long-term successful future of natural gas and
a complementary energy policy. Natural gas will be help-
ful in creating a stronger economy, reducing dependence
on foreign oil and strengthening our national security.
What’s behind the concept of the “full fuel cycle,”
and why is it important to consumers?
Cocklin: It all has to do with efficiency. Now, remembering
that electricity is not a fuel and it requires a primary fuel,
such as coal, to make it, much of the efficiency of the fuel
used to make electricity is lost in generation and trans-
mission. With natural gas, 92 percent of the product that
comes from the ground can be consumed directly. In con-
trast, only 32 percent of the energy from the fuels used in
generating, transmitting and distributing electricity reaches
customers. That’s an important point for consumers to
remember when they choose new appliances. It’s also critical
for policymakers to consider when setting energy standards
and regulations in a carbon-constrained economy.
ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT | 11
The TimberCreek Zero Energy
House, a 2009 demonstration project
for the U.S. Department of Energy’s
Building America program, reflects
dual goals of saving money on
energy bills and reducing adverse
effects on the environment. Builder
Chris Miles, Atmos Energy’s man-
ager of energy-efficiency programs
Randy Beard and architect William
Peck discuss the innovative design
as members of the public tour the
house located in Lewisville, Texas.
Best: Another aspect of natural gas is that you can store it. You can’t do that with electricity. As a cost-savings for our customers,
we can take advantage of buying natural gas when the prices are low and putting supplies into storage facilities. Then, we
take out the gas in the winter months when consumption goes up and wholesale prices are high. For example, in the sum-
mertime, we may have put gas into storage at a cost of $3 per thousand cubic feet (Mcf). In the wintertime, when natural gas
prices are $7 an Mcf, we can pull out stored resources and charge the customer $3 rather than $7. It’s a big savings. In this way,
we can provide efficient heating at lower prices without the sticker shock that normally accompanies high-demand cycles.
We also can assure there are ample gas supplies available even on the coldest days. Electricity in recent years has faced
some severe shortages and failures of the distribution grid in the Great Lakes and Northeast. That’s why there’s such a
push now to rebuild the country’s electric grid using modern technology. The natural gas pipeline network does not suffer
from this problem. It’s up to date and up to the task of serving American consumers.
12 | ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT
Trends show that, while more homes and businesses are using natural
gas, individual usage of natural gas has gone down due to conserva-
tion. How can this be good for your company and your industry?
Cocklin: Natural gas utilities have been steadfast proponents of conserva-
tion. First and foremost, we want our customers to be happy. We want them
to understand that natural gas is the most efficient, economical, clean and
comfortable energy source they have available. But, they’re not going to be happy if they have extremely
high energy bills.
So, we provide them with not only the most economical source of supply, but also information, tips and
help about how they can reduce their utility bills. We strive to create a partnership with our customers. By
working with them in a collaborative manner, we believe more people will take advantage of our product and
its benefits.
Best: Over the past 25 years, the use-per-customer of natural gas has declined about 1 percent a year because
homes have become better constructed and insulated. Gas appliances also have become much more efficient.
Replacing a 65-percent-efficient furnace with one that’s 95 percent efficient creates a large savings. Atmos
Energy offers smart meters in some communities, so that our customers can actually see when they are con-
suming natural gas and how much. In this way, they become part of the conservation equation. We believe
that conservation is really good for our customers, our country and our environment.
Residential Natural Gas Consumers Lead in Energy Efficiency
Millions of British thermal units (Btu) per year
120
100
80
60
40
20
0
0
8
9
1
5
8
9
1
0
9
9
1
5
9
9
1
0
0
0
2
5
0
0
2
The average American home uses about one-third less natural gas today than in 1980.
This decline, even as demand for energy has risen, is the result of conservation programs,
better home construction and more-efficient natural gas appliances.
Source: U.S. Energy Information Administration and American Gas Association
ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT | 13
One of the most impressive features
of the TimberCreek house is the
natural gas tankless water heater,
providing a constant supply of hot
water and using about half the total
energy of an electric water heater.
Manufacturing operations that
require reliable energy and high heat
rely on natural gas. Nearly 3,000
plants and factories, such as this large
glass manufacturing works, benefit
from the clean, efficient and direct
energy that Atmos Energy delivers.
With more people practicing energy conservation, does that lessen your
bottom line?
Best: That’s a very important point. Atmos Energy makes absolutely no money
on the natural gas we buy for our utility customers. Our cost for natural gas
is passed on to our customers without any markup. There’s not one penny
added to anyone’s bill. Our customers pay us to bring the gas into the city and
into their homes. Their natural gas bills cover our costs of making sure the
city pipelines are in good shape and that natural gas is delivered in a safe and reliable manner. Because we
buy gas at the lowest possible costs in the summer and store it for winter use, we effectively smooth out the
bills our customers receive, so that their heating costs are much more predictable and stable. It’s a little bit
ironic that, even though we’re the largest all-natural-gas distributor in the United States, we’re really not a
“gas” company at all. We’re a service company.
14 | ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT
You mentioned forming a partnership with your customers. What are
some of the ways you are partnering with the communities you serve?
Best: We serve more than 1,600 communities throughout a 12-state area.
One of the things we constantly emphasize as part of our culture is that
we are very good community stewards, and that commitment takes many
forms. We support community organizations not only by giving funds,
but also personally with many of our employees donating time to work with worthwhile nonprofits. We support United
Way, The Komen Foundation, Habitat for Humanity, Boys & Girls Clubs and Scouting, to name a few of the nationally
known organizations we help.
Cocklin: To this end, we have initiatives in several states that involve contributing shareholder dollars and customer
dollars that we match to help the elderly, the disabled and low-income families pay their gas utility bills. We also
work closely with public health agencies in the local communities to make sure that customers who are unable to pay
their bills have a way to keep their gas service on. We actively communicate with customers who are having trouble
paying their gas bills to call us. We’ll either work out a plan or direct them to an appropriate agency for assistance.
Best: On a national level, we’ve been very active in lobbying to increase funding for LIHEAP (Low Income Home
Energy Assistance Program), a federal program that helps customers who are unable to pay their bills. Historically, the
Northern and Midwestern states have gotten the lion’s share of LIHEAP funds, but we know it gets cold in the South,
too. As a utility, Atmos Energy serves people from all walks of life. We have well-intentioned customers who through
bad luck, the loss of a job, fixed income or an extended illness need help. We want to help them.
One program that we take pride in is assisting elderly customers insulate and weatherize their homes. It not only
reduces their utility bills and makes them more comfortable, but also Atmos Energy’s employees enjoy meeting
these folks and helping people who could just as easily be their own parents, aunts and uncles or grandparents. It’s a
gratifying experience.
Looking ahead 30 years, can you
make a few predictions about our
future energy landscape?
Cocklin: Thirty years ago, the conven-
tional wisdom was that we wouldn’t have
any natural gas left today. Obviously, that
hasn’t happened—quite the opposite.
Thirty years from now, you’ll see the na-
tion has taken some pretty dramatic steps
forward in the energy business. We’ll have
efficiencies we haven’t even thought of
yet, and renewables will certainly be a
bigger part of our energy mix. We’ll see
advances in ethanol and methane, and we
will have made great strides in control-
ling greenhouse gases and global warm-
ing. It will be a great world to live in,
and natural gas will be a dominant part
of the new world energy portfolio.
Delivery Costs for an Average Residential Natural Gas Customer
Cost of natural gas billed with no markup
77%
Cost of delivery service
by Atmos Energy
6%
Taxes and franchise fees paid
to municipalities and others
17%
About three-fourths of a residential customer’s natural gas bill pays for fuel,
which we charge at our cost. Atmos Energy earns its income
from delivering natural gas at rates set by state and local regulators.
Source: Atmos Energy Corporation, 2008 data
ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT | 15
Our goal is to enhance shareholder value
through consistent earnings growth.
To Our Shareholders
For the ninth consecutive year in fiscal 2009, we achieved our stated goal of growing
Atmos Energy’s earnings per share by 4 percent to 6 percent, on average, despite the
enormous economic challenges faced by our country, our customers and our company.
Robert W. Best, chairman and chief executive officer, (right) and Kim R. Cocklin,
president and chief operating officer
Superhighway to the Future
Unfortunately, the proposed clean-air
and energy legislation now in Congress
overlooks the many benefits that natu-
ral gas offers our country. Many law-
makers acknowlege that natural gas can
play a future role, but only as a bridge
fuel from today’s fossil-fuel economy to
a future fueled with renewable energy.
What’s overlooked is that natural
gas promises an abundant fuel source
All of us at Atmos Energy are proud to be part of the natural
gas industry. Our product is not only one of the most ver-
satile and efficient fuels, it’s also one of the cleanest. Using
natural gas wisely can significantly improve the environ-
ment while lowering outlays for imported foreign oil. Its use
also can increase our nation’s overall energy efficiency.
This past year, the respected Potential Gas Committee
announced that the country now has potential natural gas
resources that could last for well over a century. This expert
assessment, along with the exceptional growth in gas pro-
duction from new developments like the Barnett Shale and
the reduced industrial demand due to the current economy,
caused wholesale natural gas prices to drop more than 75
percent this past year.
This decline was good news for consumers and indus-
try. Natural gas supply and demand have shifted to a new
equilibrium, with gas prices at much more reasonable levels.
that renewables cannot match. Even taken altogether,
wind, solar, hydro and biomass will not be able to provide
the energy our future economy will demand. Moreover,
using domestic natural gas offers a solution to significantly
lower our country’s dependence on foreign oil and the
threat that poses to our long-term security.
Best of all, natural gas offers dramatically lower
emissions to address global warming—the real reason our
country is planning to invest so much in alternative fuels.
Natural gas is more than a bridge fuel. It’s a super-
highway to our energy future. We must encourage our
nation’s policymakers to take full advantage of it and all
the good it can provide.
That’s why we at Atmos Energy are committed not just
to using more natural gas, but to using it more wisely. In
this annual report, we discuss the vital role of natural gas for
our nation.
16 | ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT
Our goal is to enhance shareholder value
through consistent earnings growth.
Fiscal 2009 Performance
Atmos Energy achieved a
highly successful fiscal 2009. For the ninth consecutive
year, we accomplished our stated goal of growing earnings
per share by 4 percent to 6 percent, on average, despite
the continuing effects of difficult economic challenges.
Earnings per diluted share increased by 8 cents to $2.08,
a 4 percent improvement over fiscal 2008. Consolidated net
income rose 6 percent, year over year, to $191.0 million.
The company’s regulated operations contributed 83
percent of consolidated net income, or $1.72 per diluted
share, and nonregulated operations provided solid results
with 36 cents of earnings per diluted share. Cash flow from
operations for the year increased by more than $548 mil-
lion to $919.2 million. The debt-to-capital ratio improved
to 51 percent at fiscal year-end, compared with nearly 55
percent at the end of fiscal 2008.
In fiscal 2009, Atmos Energy paid cash dividends
of $1.32 per share, and the board of directors raised the
dividend for fiscal 2010. The increase of 2 cents per share
provides an indicated annual dividend rate of $1.34 and
marks the company’s 22nd consecutive annual increase.
Net Income per Diluted Share
$2.50
2.00
1.50
1.00
.50
0
2
0
0
9
2
0
0
2
8
0
0
2
7
0
0
2
6
0
0
5
2009 Net Income by Segment
80%
70%
60%
50%
40%
30%
20%
10%
0%
N
a
t
u
r
a
l
N
a
t
u
r
a
l
P
i
p
e
l
i
n
e
,
s
t
o
g
r
a
a
s
g
R
a
e
n
g
d
u
l
s
a
t
t
o
e
r
d
a
t
m
g
a
r
e
r
e
a
n
d
g
a
a
n
s
s
d
i
s
t
r
i
b
u
t
i
o
n
m
i
s
s
i
o
n
k
e
t
i
n
g
o
t
h
e
r
Operating Results
A major achievement of fiscal 2009
was successfully resolving 22 rate cases, which generated
$54.4 million of operating income. We are focused on
seeking rate and regulatory outcomes that improve our
customer relations, support economic growth and develop-
ment in the communities we serve and ensure safe, reliable
and competitive service.
Today more than 93 percent of our natural gas dis-
tribution customers are charged rates that are weather-
normalized to reduce price volatility in their gas bills. In 86
percent of our markets, we are able to adjust rates annually
to reflect changes in our costs, revenues and capital invest-
ments using streamlined and efficient rate mechanisms
without having to file costly full rate proceedings.
In addition, we can now recover the gas-cost-related
portion of bad debt through tracker mechanisms for about
65 percent of the total budgeted cost of gas in our regulated
distribution operations for fiscal 2010.
Demand for natural gas has declined nationwide as
customers conserve in response to the economy and as
older gas-fueled applications are replaced by more efficient
ones. In fiscal 2009, the company’s consolidated through-
put went down 7.5 percent, compared to throughput in
fiscal 2008. However, this decline was offset by successful
rate cases, higher demand fees and increased unit margins.
The nationwide decline in demand for natural gas
ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT | 17
Natural gas is more than a bridge fuel.
It’s the superhighway to our energy future.
lowered gas prices significantly. The lower gas prices con-
tributed to the dramatic increase in our cash flow from
operations as well as helped us in our accounts receivable
and collection efforts. Bad debt expense as a percent of
revenue in the regulated distribution segment declined to
0.26 percent, one of our lowest points in years.
Although the decline in gas prices has lowered
consumers’ bills, we continue to seek rate improvements
and public assistance for customers who have difficulty
paying their bills.
Growth Strategy
Since 1986, Atmos Energy has com-
pleted 10 major acquisitions successfully. Our distribution
operations have grown from 279,000 customers located in
West Texas to more than 3 million customers located in
12 states. We also now serve more than 1,000 industrial,
commercial and municipal customers in the Midwest and
Southeast through our nonregulated operations.
The recent crisis in the credit markets focused busi-
nesses on liquidity and slowed mergers and acquisitions.
Atmos Energy has always benefited by patiently seeking
sensible growth opportunities that were fairly priced and fit
our corporate strategy. We will continue this approach.
Our capital investments will continue to support our
financial viability and our revenue growth. We forecast that
the company’s consolidated capital expenditures will in-
crease from $509.5 million in fiscal 2009 to a range of $520
million to $535 million in fiscal 2010. We expect to spend
from $507 million to $520 million on regulated projects.
erational condition. As previously announced, we have
forecasted earnings per diluted share for fiscal 2010 to be
in the range of $2.15 to $2.25.
We believe our credit and liquidity positions, along
with operating cash, are sufficient to meet our working
capital needs. During fiscal 2009, we renewed or replaced a
number of credit facilities, including a $450 million com-
mitted line of credit.
In March 2009, we also sold $450 million of 10-year
senior notes to pay off $400 million of notes due in
October 2009. As a result, Moody’s and Standard & Poor’s
upgraded our credit ratings, and we now see no need to
access the debt markets until 2011. At September 30, 2009,
we had more than $1 billion of liquidity available.
Major capital projects in 2010 include constructing
a new information technology center and a new customer
service and training facility as well as breaking ground
for a new customer contact center. These investments will
contribute to improving customer service and to making
Atmos Energy an industry leader in employee training and
development.
Safety always remains our top priority. We also will
continue to focus on improving our rate and regulatory
strategy and seeking settlements that are acceptable to our
customers. We will seek rate treatment that permits prompt
recovery of our capital investments, improves the recovery
of our fixed costs and allows us to achieve rates of return
that attract new capital. Having ended further investment
in the Fort Necessity Gas Storage Project in Louisiana, we
will continue to seek interested parties to buy the project
or to partner with us to complete its development.
Outlook for 2010
Our main goals are to enhance
shareholder value through consistent earnings growth, to
continue improving our customer service and to develop
the technical and managerial strengths of our employees.
We believe the company is in solid financial and op-
Board Changes
During 2009, Dan Busbee retired
from the board of directors after more than 20 years of
service. We thank him for his wise and valuable counsel
and great dedication.
The board has added two new members. Robert C.
18 | ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT
Natural gas is more than a bridge fuel.
It’s the superhighway to our energy future.
Shelley Burnett, Atmos Energy’s
manager of public affairs in San An-
gelo, Texas, appears on the evening
news to talk about using natural gas
safely. Providing safe and reliable ser-
vice is Atmos Energy’s highest prior-
ity. The company uses many ways to
communicate with the public about
what to do if they detect a natural
gas leak, to call 811 before digging or
excavating and to avoid disrupting
pipeline rights of way.
Grable was elected a director in May. Mr. Grable is one of
the seven founding members and head of the energy prac-
tice group of Kelly Hart & Hallman LLP, a Fort Worth law
firm. He is board certified in oil, gas and mineral law by the
Texas Board of Legal Specialization and has served as chair-
man of the Oil, Gas and Energy Resources Law Section of
the State Bar of Texas.
Kim R. Cocklin was elected a director in November
2009. Mr. Cocklin, who serves as president and chief operat-
ing officer of the company, joined Atmos Energy in June
2006 as senior vice president and was promoted to his cur-
rent position in October 2008. Before coming to Atmos En-
ergy, he was senior vice president, general counsel and chief
compliance officer of Piedmont Natural Gas Company from
2003 to 2006. Prior to that time, he was senior vice president
of Williams Gas Pipeline, in charge of the operations of its
Texas Gas and Central Pipelines.
On behalf of the board of directors and the officers of
the company, we thank you for your investment in Atmos
Energy and extend our collective appreciation to the compa-
ny’s 4,900 employees for their loyal and dedicated service. We
are all proud to be part of the natural gas industry, working
on behalf of our shareholders, customers and communities.
Robert W. Best
Chairman and Chief Executive Officer
Kim R. Cocklin
President and Chief Operating Officer
November 30, 2009
ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT | 19
Compared to coal, natural gas emits nearly 50 percent less carbon dioxide, or CO2.
Natural gas produces 30 percent less CO2 than oil.
More than 98 percent of the natural gas used in the United States comes from North America.
Natural gas makes wind and solar energy viable and provides a foundation for them to grow.
Our country has more than a 100-year supply of natural gas.
Natural gas is an affordable and readily available long-term solution.
Financial Highlights
Year Ended September 30
Dollars in thousands, except per share data
2009
2008
Change
Compared to coal, natural gas emits nearly 50 percent less carbon dioxide, or CO2.
Natural gas produces 30 percent less CO2 than oil.
More than 98 percent of the natural gas used in the United States comes from North America.
Natural gas makes wind and solar energy viable and provides a foundation for them to grow.
Our country has more than a 100-year supply of natural gas.
Natural gas is an affordable and readily available long-term solution.
Operating revenues
Gross profit
Natural gas distribution net income
Regulated transmission and storage net income
Natural gas marketing net income
Pipeline, storage and other net income
Total
Total assets
Total capitalization*
Net income per share — diluted
Cash dividends per share
Book value per share at end of year
Consolidated natural gas distribution throughput (MMcf)
Consolidated regulated transmission and storage transportation volumes (MMcf)
Consolidated natural gas marketing throughput (MMcf)
Heating degree days †
Degree days as a percentage of normal †
Meters in service at end of year
Return on average shareholders’ equity
Shareholders’ equity as a percentage of total capitalization
(including short-term debt) at end of year
Shareholders of record
Weighted average shares outstanding — diluted (000s)
* Total capitalization represents the sum of shareholders’ equity and long-term debt, excluding current maturities.
† Heating degree days are adjusted for service areas with weather-normalized operations.
Summary Annual Report
The financial information presented in this report about Atmos Energy Corporation is
condensed. Our complete financial statements, including notes as well as manage-
ment’s discussion and analysis of financial condition and results of operations, are
presented in our Annual Report on Form 10-K. Atmos Energy’s chief executive officer
and its chief financial officer have executed all certifications with respect to the
financial statements contained therein and have completed management’s report on
internal control over financial reporting, which are required under the Sarbanes-
Oxley Act of 2002 and all related rules and regulations of the Securities and
Exchange Commission. Investors may request, without charge, our Annual Report
on Form 10-K for the fiscal year ended September 30, 2009, by calling Investor Rela-
tions at 972-855-3729 between 8 a.m. and 5 p.m. Central time. Our Annual Report on
Form 10-K also is available on Atmos Energy’s Web site at www.atmosenergy.com.
Additional investor information is presented on pages 31 and 32 of this report.
$ 4,969,080
$ 1,346,702
$ 7,221,305
$ 1,321,326
$ 116,807
41,056
20,194
12,921
$ 190,978
$ 6,343,766
$ 4,346,161
2.08
$
1.32
23.52
$
$
$
92,648
41,425
29,989
16,269
$
180,331
$ 6,386,699
$ 4,172,284
$
$
$
2.00
1.30
22.60
408,885
528,689
370,569
2,713
429,354
595,542
389,392
2,820
(31.2)%
1.9%
26.1%
(0.9)%
(32.7)%
(20.6)%
5.9%
(0.7)%
4.2%
4.0%
1.5%
4.1%
(4.8)%
(11.2)%
(4.8)%
(3.8)%
100% 100%
3,178,844
8.9%
3,191,779
8.8%
—
(0.4)%
1.1%
49.3%
45.4%
8.6%
20,790
92,024
21,756
90,272
(4.4)%
1.9%
ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT | 21
Atmos Energy at a Glance
Year Ended September 30
Meters in service
Residential
Commercial
Industrial
Public authority and other
Total meters
Heating degree days*
Actual (weighted average)
Percent of normal
Natural gas distribution sales volumes (MMcf)
Residential
Commercial
Industrial
Public authority and other
Total
Natural gas distribution transportation volumes (MMcf)
Total natural gas distribution throughput (MMcf)
Intersegment activity (MMcf)
Consolidated natural gas distribution throughput (MMcf)
Consolidated regulated transmission and storage transportation volumes (MMcf)
Consolidated natural gas marketing throughput (MMcf)
Operating revenues (000s)
Natural gas distribution sales revenues
Residential
Commercial
Industrial
Public authority and other
Total gas distribution sales revenues
Transportation revenues
Other gas revenues
Total natural gas distribution revenues
Regulated transmission and storage revenues
Natural gas marketing revenues
Pipeline, storage and other revenues
Total operating revenues (000s)
Other statistics
Gross plant (000s)
Net plant (000s)
Miles of pipe
Employees
* Heating degree days are adjusted for service areas with weather-normalized operations.
22 | ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT
2009
2008
2,901,577
265,843
2,193
9,231
3,178,844
2,911,475
268,845
2,241
9,218
3,191,779
2,713
2,820
100%
100 %
159,762
91,379
18,563
12,413
282,117
163,229
93,953
21,734
13,760
292,676
130,691
412,808
(3,923)
408,885
528,689
370,569
141,083
433,759
(4,405)
429,354
595,542
389,392
$ 1,830,140
838,184
135,633
89,183
2,893,140
59,115
31,711
2,983,966
119,427
1,832,912
32,775
$ 4,969,080
$ 2,131,447
1,077,056
212,531
137,821
3,558,855
59,712
35,771
3,654,338
108,116
3,436,563
22,288
$ 7,221,305
$ 6,086,618
$ 5,730,156
$ 4,439,103
76,942
4,891
$ 4,136,859
83,645
4,750
Condensed Consolidated Balance Sheets
September 30
Dollars in thousands, except share data
2009
2008
Assets
Property, plant and equipment
Construction in progress
Less accumulated depreciation and amortization
Net property, plant and equipment
Current assets
Cash and cash equivalents
Accounts receivable, less allowance for doubtful accounts of
$11,478 in 2009 and $15,301 in 2008
Gas stored underground
Other current assets
Total current assets
Goodwill and intangible assets
Deferred charges and other assets
Capitalization and Liabilities
Shareholders’ equity
Common stock, no par value (stated at $.005 per share);
200,000,000 shares authorized; issued and outstanding:
2009—92,551,709 shares, 2008—90,814,683 shares
Additional paid-in capital
Accumulated other comprehensive loss
Retained earnings
Shareholders’ equity
Long-term debt
Total capitalization
Current liabilities
Accounts payable and accrued liabilities
Other current liabilities
Short-term debt
Current maturities of long-term debt
Total current liabilities
Deferred income taxes
Regulatory cost of removal obligation
Deferred credits and other liabilities
$ 5,981,420
105,198
6,086,618
1,647,515
4,439,103
$ 5,650,096
80,060
5,730,156
1,593,297
4,136,859
111,203
46,717
232,806
352,728
132,203
828,940
740,064
335,659
$ 6,343,766
477,151
576,617
184,619
1,285,104
739,086
225,650
$ 6,386,699
463
$
1,791,129
(20,184)
405,353
2,176,761
2,169,400
4,346,161
207,421
457,319
72,550
131
737,421
570,940
321,086
368,158
$
454
1,744,384
(35,947)
343,601
2,052,492
2,119,792
4,172,284
395,388
460,372
350,542
785
1,207,087
441,302
298,645
267,381
$ 6,343,766
$ 6,386,699
ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT | 23
Condensed Consolidated Statements of Income
Year Ended September 30
Dollars in thousands, except per share data
2009
2008
2007
$ 2,984,765
209,658
2,336,847
41,924
1,960,137
—
2,252,235
12,428
$ 3,655,130
$ 3,358,765
195,917
163,229
4,287,862
3,151,330
31,709
(604,114) (949,313)
4,969,080
7,221,305
33,400
(808,293)
5,898,431
2,649,064
2,406,081
—
—
4,194,841
3,047,019
3,396
(602,422) (947,322)
3,622,378
5,899,979
1,346,702
1,321,326
494,010
217,208
182,700
5,382
899,300
447,402
(3,303)
152,830
291,269
100,291
$ 190,978
—
500,234
200,442
192,755
893,431
427,895
2,731
137,922
292,704
112,373
792
(805,543)
4,648,349
1,250,082
463,373
198,863
182,866
6,344
851,446
398,636
9,184
145,236
262,584
94,092
$ 180,331
$ 168,492
$
$
2.10
2.08
$
$
2.02
2.00
$
$
1.94
1.92
91,117
92,024
89,385
90,272
86,975
87,745
Operating revenues
Natural gas distribution segment
Regulated transmission and storage segment
Natural gas marketing segment
Pipeline, storage and other segment
Intersegment eliminations
Purchased gas cost
Natural gas distribution segment
Regulated transmission and storage segment
Natural gas marketing segment
Pipeline, storage and other segment
Intersegment eliminations
Gross profit
Operating expenses
Operation and maintenance
Depreciation and amortization
Taxes, other than income
Asset impairments
Total operating expenses
Operating income
Miscellaneous income (expense), net
Interest charges
Income before income taxes
Income tax expense
Net income
Per share data
Basic net income per share
Diluted net income per share
Weighted average shares outstanding:
Basic
Diluted
24 | ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT
Condensed Consolidated Statements of Cash Flows
Year Ended September 30
Dollars in thousands
Cash Flows from Operating Activities
Net income
Adjustments to reconcile net income to net cash
provided by operating activities:
Asset impairments
Depreciation and amortization:
Charged to depreciation and amortization
Charged to other accounts
Deferred income taxes
Stock-based compensation
Debt financing costs
Other
Changes in assets and liabilities
Net cash provided by operating activities
Cash Flows Used in Investing Activities
Capital expenditures
Other, net
Net cash used in investing activities
Cash Flows from Financing Activities
Net increase (decrease) in short-term debt
Net proceeds from issuance of long-term debt
Settlement of Treasury lock agreement
Repayment of long-term debt
Cash dividends paid
Issuance of common stock
Net proceeds from equity offering
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
2009
2008
2007
$ 190,978
$ 180,331
$ 168,492
5,382
—
6,344
217,208
200,442
198,863
94
129,759
14,494
147
97,940
14,032
10,364
10,665
(1,177) (5,492)
352,131 (127,132)
919,233
370,933
192
62,121
11,934
10,852
(1,516)
89,813
547,095
(509,494)
(472,273)
(392,435)
(7,707)
(10,736)
(517,201) (483,009)
(10,436)
(402,871)
200,174
(213,242)
—
(283,981)
445,623
1,938
—
(407,353) (10,284)
(121,460) (117,288)
25,466
27,687
—
—
(337,546)
98,068
64,486 (14,008)
60,725
46,717
247,217
4,750
(303,185)
(111,664)
24,897
191,913
(159,314)
(15,090)
75,815
$ 111,203
$
46,717
$
60,725
ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT | 25
Report of Independent Registered Public Accounting Firm on Condensed Financial Statements
The Board of Directors and Shareholders of Atmos Energy Corporation
We have audited, in accordance with the standards of the Public Company
Accounting Oversight Board (United States), the consolidated balance sheets of
Atmos Energy Corporation at September 30, 2009 and 2008, and the related
consolidated statements of income, shareholders’ equity, and cash flows for each
of the three years in the period ended September 30, 2009 (not presented sepa-
rately herein); and in our report dated November 16, 2009, we expressed an
unqualified opinion on those consolidated financial statements. In our opinion,
the information set forth in the accompanying condensed consolidated financial
statements is fairly stated in all material respects in relation to the consolidated
financial statements from which it has been derived.
We also have audited, in accordance with the standards of the Public Company
Accounting Oversight Board (United States), the effectiveness of Atmos Energy
Corporation’s internal control over financial reporting as of September 30,
2009, based on criteria established in Internal Control—Integrated Framework
issued by the Committee of Sponsoring Organizations of the Treadway Com-
mission and our report dated November 16, 2009 (not presented separately
herein) expressed an unqualified opinion thereon.
Dallas, Texas
November 16, 2009
26 | ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT
Consolidated Financial and Statistical Summary 2005–2009
Year Ended September 30
2009
2008
2007
2006
2005
Balance Sheet Data at September 30 (000s)
Capital expenditures
Net property, plant and equipment
Working capital
Total assets
Shareholders’ equity
Long-term debt, excluding current maturities
Total capitalization
$ 509,494
4,439,103
91,519
$ 472,273
4,136,859
78,017
$ 392,435
$ 425,324
$ 333,183
3,836,836
3,629,156
3,374,367
149,217
(1,616)
151,675
6,343,766
6,386,699
5,895,197
5,719,547
5,610,547
2,176,761
2,052,492
1,965,754
1,648,098
1,602,422
2,169,400
2,119,792
2,126,315
2,180,362
2,183,104
4,346,161
4,172,284
4,092,069
3,828,460
3,785,526
Income Statement Data
Operating revenues (000s)
Gross profit (000s)
Net income (000s)
Net income per diluted share
Common Stock Data
Shares outstanding (000s)
End of year
Weighted average
Cash dividends per share
Shareholders of record
Market price—High
Low
End of year
Book value per share at end of year
Price/Earnings ratio at end of year
Market/Book ratio at end of year
Annualized dividend yield at end of year
Customers and Volumes (as metered)
Consolidated distribution gas sales volumes (MMcf)
Consolidated distribution gas transportation
volumes (MMcf)
Consolidated distribution throughput (MMcf)
Consolidated transmission and storage
transportation volumes (MMcf)
Consolidated natural gas marketing
throughput (MMcf)
$ 4,969,080
1,346,702
190,978
2.08
$ 7,221,305
$ 5,898,431
$ 6,152,363
$ 4,961,873
1,321,326
1,250,082
1,216,570
1,117,637
180,331
2.00
168,492
147,737
135,785
1.92
1.82
1.72
$
$
$
$
$
92,552
92,024
1.32
20,790
28.80
20.20
28.18
23.52
13.55
1.20
$
$
$
$
$
90,815
90,272
89,327
87,745
81,740
81,390
80,539
79,012
1.30
$
1.28
$
1.26
$
1.24
21,756
22,829
24,690
26,242
$
$
$
$
29.46
25.09
26.62
22.60
13.31
1.18
$
$
$
$
33.11
26.47
28.32
22.01
14.75
1.29
$
$
$
$
29.11
25.79
28.55
20.16
15.69
1.42
29.76
24.85
28.25
19.90
16.42
1.42
4.7%
4.9%
4.5%
4.4%
4.4%
282,117
292,676
297,327
272,033
296,283
126,768
408,885
136,678
429,354
130,542
427,869
121,962
393,995
114,851
411,134
528,689
595,542
505,493
410,505
373,879
Meters in service at end of year
Heating degree days*
Degree days as a percentage of normal*
Gas distribution average cost of gas per Mcf sold
$
Gas distribution average transportation fee per Mcf $
370,569
3,178,844
389,392
370,668
283,962
238,097
3,191,779
3,187,127
3,181,199
3,157,840
2,713
2,820
2,879
2,527
2,587
100%
100%
100%
87%
89%
6.95
.46
$
$
9.05
.43
$
$
8.09
.44
$
$
10.02
.49
$
$
7.41
.49
Statistics
Return on average shareholders’ equity
Number of employees
Net gas distribution plant per meter
Gas distribution operation and maintenance
expense per meter
Meters per employee—gas distribution
Times interest earned before income taxes
8.9%
8.8%
8.8%
8.9%
9.0%
$
$
4,891
1,165
116
678
2.82
$
$
4,750
1,091
122
700
3.06
$
$
4,653
1,020
119
713
2.75
$
$
4,632
969
$
4,543
927
$
112
723
2.55
110
730
2.59
* Heating degree days are adjusted for service areas with weather-normalized operations.
ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT | 27
Atmos Energy Officers
Senior Management Team
Regulated Divisions
Robert W. Best
Chairman and
Chief Executive Officer
Kim R. Cocklin
President and
Chief Operating Officer
J. Kevin Akers
President,
Kentucky/Mid-States Division
Richard A. Erskine
President,
Atmos Pipeline–Texas Division
Fred E. Meisenheimer
Senior Vice President,
Chief Financial Officer and Treasurer
David E. Gates
President,
Mississippi Division
Louis P. Gregory
Senior Vice President and
General Counsel
Michael E. Haefner
Senior Vice President,
Human Resources
28 | ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT
Gary W. Gregory
President,
West Texas Division
Tom S. Hawkins, Jr.
President,
Louisiana Division
John A. Paris
President,
Mid-Tex Division
Gary L. Schlessman
President,
Colorado-Kansas Division
J. Kevin Akers
President,
Kentucky/Mid-States Division
Richard A. Erskine
President,
Atmos Pipeline–Texas Division
David E. Gates
President,
Mississippi Division
Gary W. Gregory
President,
West Texas Division
Tom S. Hawkins, Jr.
President,
Louisiana Division
John A. Paris
President,
Mid-Tex Division
Gary L. Schlessman
President,
Colorado-Kansas Division
Atmos Energy Officers
Nonregulated Operations
Shared Services (continued)
Mark S. Bergeron
President,
Atmos Energy Holdings, Inc.
Susan K. Giles
Vice President,
Investor Relations
Ronald W. McDowell
Vice President,
New Business Ventures
Richard J. Gius
Vice President and
Chief Information Officer
Shared Services
Verlon R. Aston, Jr.
Vice President,
Governmental and
Public Affairs
Charles M. Davis, Jr.
Vice President,
Corporate Development
Conrad E. Gruber
Vice President,
Strategic Planning
John J. Hardgrave
Vice President,
Customer Service
Dwala J. Kuhn
Corporate Secretary
Christopher T. Forsythe
Vice President and Controller
Kenneth M. Malter
Vice President,
Gas Supply and Services
ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT | 29
Board of Directors
Travis W. Bain II
Robert W. Best
Richard W. Cardin
Kim R. Cocklin
Richard W. Douglas
Ruben E. Esquivel
Chairman, Texas
Custom Pools, Inc.
Plano, Texas
Chairman and Chief
Retired partner of Arthur
President and
Executive Vice President,
Vice President for
Executive Officer,
Andersen LLP
Chief Operating Officer
Jones Lang LaSalle LLC
Community and Corporate
Atmos Energy Corporation
Nashville, Tennessee
Atmos Energy Corporation
Dallas, Texas
Relations, The University
Board member since 1988
Dallas, Texas
Board member since 1997
Dallas, Texas
Board member since 2007
of Texas Southwestern
Committees: Work
Board member since 1997
Committees: Audit
Board member since 2009
Committees: Human
Medical Center at Dallas
Session/Annual Meeting
(Chairman), Audit,
Executive, Human Resources
(Chairman), Executive,
Nominating and Corporate
Governance
Resources, Work Session/
Dallas, Texas
Annual Meeting
Board member since 2008
Committees: Audit,
Human Resources
Thomas J. Garland
Richard K. Gordon
Robert C. Grable
Chairman of the Tusculum
General Partner, Juniper
Partner, Kelly Hart &
Institute for Public
Energy LP, Juniper Capital
Hallman LLP
Leadership and Policy
LP and Juniper Advisory LP
Fort Worth, Texas
Dr. Thomas C.
Meredith
Retired, formerly
Commissioner of
Phillip E. Nichol
Nancy K. Quinn
Retired Senior Vice
Principal, Hanover
President of Central
Capital, LLC
Division Staff, UBS
East Hampton, New York
Greeneville, Tennessee
Houston, Texas
Board member since 2009
Mississippi Institutions
PaineWebber Incorporated
Board member since 2004
Board member since 1997
Board member since 2001
Committees: Audit, Human
of Higher Learning
Dallas, Texas
Committees: Audit,
Committees: Human
Committees: Human
Resources
Jackson, Mississippi
Board member since 1985
Nominating and Corporate
Resources, Work Session/
Resources (Chairman),
Board member since 1995
Committees: Nominating
Governance
Annual Meeting
Executive, Nominating and
Committees: Audit,
and Corporate Governance
Corporate Governance
Nominating and Corporate
(Chairman), Executive,
Governance
Human Resources, Work
Session/Annual Meeting
Stephen R. Springer
Charles K. Vaughan
Richard Ware II
Lee E. Schlessman
Retired Senior Vice President
Retired Chairman
President, Amarillo
Honorary Director
and General Manager,
of the Board,
National Bank
President, Dolo
Midstream Division, The
Atmos Energy Corporation
Amarillo, Texas
Investment Company
Williams Companies, Inc.
Dallas, Texas
Board member since 1994
Denver, Colorado
Syracuse, Indiana
Board member since 1983
Committees: Nominating
Retired from Board
Board member since 2005
Presiding Director
and Corporate Governance,
in 1998
Committee: Work Session/
Committee: Executive
Work Session/Annual
Annual Meeting
(Chairman)
Meeting
30 | ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT
Corporate Information
Common Stock Listing
New York Stock Exchange. Trading symbol: ATO
Stock Transfer Agent and Registrar
American Stock Transfer and Trust Company
59 Maiden Lane
Plaza Level
New York, New York 10038
800-543-3038
To inquire about your Atmos Energy common stock, please call
AST at the telephone number above. You may use the agent’s
interactive voice response system 24 hours a day to learn about
transferring stock or to check your recent account activity all
without the assistance of a customer service representative.
Please have available your Atmos Energy shareholder account
number and your Social Security or federal taxpayer ID number.
To speak to an AST customer service representative,
please call the same number between 8 a.m. and 7 p.m.
Eastern time, Monday through Thursday, or 8 a.m. to 5 p.m.
Eastern time on Friday.
You also may send an e-mail message on our agent’s Web
site at http://www.amstock.com. Please refer to Atmos Energy
in your e-mail and include your Atmos Energy shareholder
account number.
Independent Registered Public Accounting Firm
Ernst & Young LLP
One Victory Park
Suite 2000
2323 Victory Avenue
Dallas, Texas 75219
214-969-8000
Form 10-K
Atmos Energy Corporation’s Annual Report on Form 10-K is
available at no charge from Investor Relations, Atmos Energy
Corporation, P.O. Box 650205, Dallas, Texas 75265-0205
or by calling 972-855-3729 between 8 a.m. and 5 p.m.
Central time. Atmos Energy’s Form 10-K also may be viewed on
Atmos Energy’s Web site at http://www.atmosenergy.com.
Annual Meeting of Shareholders
The 2010 Annual Meeting of Shareholders will be held in the
Pavilion Ballroom at the Belo Mansion, 2101 Ross Avenue,
Dallas, Texas 75201 on Wednesday, February 3, 2010, at
11 a.m. Central time.
Direct Stock Purchase Plan
Atmos Energy Corporation has a Direct Stock Purchase Plan
that is available to all investors. For an Enrollment Application
Form and a Plan Prospectus, please call AST at 800-543-3038.
The Prospectus is also available at http://www.atmosenergy.com.
You may also obtain information by writing to Investor Rela-
tions, Atmos Energy Corporation, P.O. Box 650205, Dallas,
Texas 75265-0205.
This is not an offer to sell, or a solicitation to buy, any
securities of Atmos Energy Corporation. Shares of Atmos
Energy common stock purchased through the Direct Stock
Purchase Plan will be offered only by Prospectus.
Atmos Energy on the Internet
Information about Atmos Energy is available on the Internet at
http://www.atmosenergy.com. Our Web site includes news
releases, current and historical financial reports, other investor
data, corporate governance documents, management
biographies, customer information and facts about Atmos
Energy’s operations.
Atmos Energy Corporation Contacts
To contact Atmos Energy’s Investor Relations, call 972-855-3729
between 8 a.m. and 5 p.m. Central time or send an e-mail
message to InvestorRelations@atmosenergy.com.
Securities analysts and investment managers, please contact:
Susan K. Giles
Vice President, Investor Relations
972-855-3729 (voice) 972-855-3040 (fax)
InvestorRelations@atmosenergy.com
ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT | 31
Forward-looking Statements
Other Information
You can view this Summary Annual Report, our Annual Report
on Form 10-K and other financial documents for fiscal 2009
and previous years at http://www.atmosenergy.com.
If you are a shareholder who would like to receive our Summary
Annual Report and other company documents electronically in
the future, please sign up for electronic distribution. It’s
convenient and easy, and it saves the costs to produce and
distribute these materials.
To receive these documents over the Internet next year, please
visit http://www.amstock.com and access your account to give
your consent. Please remember that accessing the Summary
Annual Report and other company documents over the Internet
may result in charges to you from your Internet service provider
or telephone company.
The matters discussed or incorporated by reference in this
Summary Annual Report may contain “forward-looking
statements” within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of
1934. All statements other than statements of historical fact
included in this report are forward-looking statements made in
good faith by the Company and are intended to qualify for the
safe harbor from liability established by the Private Securities
Litigation Reform Act of 1995. When used in this report or any
other of the Company’s documents or oral presentations, the
words “anticipate,” “believe,” “estimate,” “expect,” “forecast,”
“goal,” “intend,” “objective,” “plan,” “projection,” “seek,”
“strategy” or similar words are intended to identify forward-
looking statements. Such forward-looking statements are subject
to risks and uncertainties that could cause actual results to differ
materially from those discussed in this report. These risks and
uncertainties are discussed in the Company’s Annual Report on
Form 10-K for the fiscal year ended September 30, 2009. Al-
though the Company believes these forward-looking statements
to be reasonable, there can be no assurance that they will
approximate actual experience or that the expectations derived
from them will be realized. Further, the Company undertakes
no obligation to update or revise any of its forward-looking
statements, whether as a result of new information, future events
or otherwise.
Inside front cover: One of the company’s major capital projects
completed in 2009 was a 25-mile-long pipeline installed near Waco,
Texas. The project was brought in at $33 million, well under budget
and ahead of schedule. The 24-inch transmission line will significantly
increase the capacity of Atmos Pipeline–Texas to serve natural gas distri-
bution utilities and electric power plants in the center part of the state.
Back cover: Atmos Energy project manager Kimberly Winn led the
team that built a major addition to Atmos Pipeline–Texas’s intrastate trans-
mission system in Central Texas. The success of the project demonstrates
the continuing dedication of company employees to serving our customers
safely, reliably and efficiently.
© 2009 Atmos Energy Corporation. All rights reserved. Atmos Energy® is a
registered trademark of Atmos Energy Corporation.
Above and right: The PCS Express helps people in
need by bringing assistance to 26 rural West Texas
counties. Amarillo-based nonprofit Panhandle
Community Services, with the support of Atmos
Energy, launched the program in 2009. Inside the
bus, individuals and families can get assistance to
pay their utility bills, sign up for help to weatherize
their homes, apply for mobile food pantry service
and seek other social services.
32 | ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT
Atmos Energy Corporation
P.O. Box 650205
Dallas, Texas 75265-0205
atmosenergy.com